House GOP Offers Fiscal Counterproposal

House Republicans made a new deficit proposal to the White House that calls for $800 billion in tax increases. Jerry Seib reports on The News Hub. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... the ... hello welcome to the use of on Jethro go ... just breaking in Washington D C after two weeks of stalled negotiations ... GOP leaders including House Speaker John painter have put forth the new plane to solve ... the so-called fiscal cliff ... oh ... so here we have breaking news from washing DC joining us now is washing DC editor for The Wall Street Journal Jerry side Gerri what is the latest round in this plan were saying just crossed that it moments ago ... well what happen the second is that the Speaker John painter out with all the other Republican House leaders behind him and that's important ... offered a counterproposal to that the proposal that President Obama set up last week yes it is just a street in Baghdad ... basically this calls for a deficit reduction package that would include eight hundred billion dollars in new revenues ... over the next ten years without raising any tax breaks ... out that's half the matter revenue that half of the one point six billion dollars that President Obama called for ... much of which was begun by increasing that operate ... for the nation's wealthiest taxpayers ... um and then also that calls for some more in Medicare and Social Security savings none of which present a bomb a ... vision that does offer ... so is ... it acceptable to the White House but this today since Forstall ... a sign that negotiations may be good mate may get going again after weekend in which ... they have essentially shut down ... I've second it's a very clever move by speaker Bayer because it takes and copies ... of assisting wholesale ... a plan put forth last year by Erskine Bowles a Democrat ... who present Obama himself nominated to head a deficit reduction commission so ... it's a it's a clever and interesting counterproposal the key is whether it's enough now to get ... serious negotiations going as opposed proposals to slide back and forth ... so it sounds like this is not something to be accepted until the White House giving as you said ... it doesn't have those tax ... a tax boost that you that the White House really needs but are there parts of this plan ... in the D tells that are expecting that the White House may be two to recommend or two to like ... that could be them the groundwork for of for plan B C going for ... well I think the White House to be happy with years and it means the Republicans have moved off their budget to ... become a more austere Paul Ryan budget that the House passed I'll which have a lot of things the White House would accept including ... much more extensive cuts in entitlement programs social Security Medicare and Medicaid ... so that others are nasty for that I think the White House may see that as a sign of progress ... as you say though that ... the the ... the irreducible problem here so far in this room ... is the fact that the White House think you simply cannot get to the kinds of revenues ... you need to bring down the deficit in the long run without raising the top tax rate for top taxpayers ... and Republicans insist they will not do that this plan doesn't resolve ... that ... basic disagreement is that basically he is in place and I still don't see how you get around a proper ... pretty awesome action the cleverness of the steel which is InterStim bulls ... who was a Democrat who was a part of the White House ... it's his plan and we will offer to step down from last week and discuss some of this talks about this as well ... when does that ... will that we make a difference that they've gone to ... who would seem to be a pretty interesting part is to move to choose ... one of their opponents backers to ... be that the groundwork for this deal ... right and his Republican some credibility in this debate that they they might have had before when it's in play they were simply saying you know tax increases non tax rate increases ... I it's hard for the White House is to simply dismiss such a plan because it does come from somebody who ... has done a lot of time talking with the president self about deficit reduction ... I think that's true I think the White House will say though is that this plan ... was created by Erskine Bowles out last year ... up in an attempt to prove to Republican leaders that there was a way to do ... serious deficit reduction deal present Obama he was trying to take a ... Republican ideas ... and all them into a plan that he thought both sides might accept so ... it's not really a Democratic idea per se it also does some things the White House will really not like for example get make some changes in so Security benefits by ... adjusting the rate of inflation on which those benefits are calculated that will be acceptable ... also calls for raising the eligibility age ... for Medicare at something else the White House is going to be wild about all the present Obama himself ... talk lecture about the potential for doing that ... but this is a kick starting with only twenty eight days before ... this happens and as you said last week has been ... going nowhere fast is this hopefully a push to see these talks of the reinvigorated ... well I think that's the key question doesn't reinvigorate the talks I think it is good as this drags out I think there's a real danger in the in the fact that the largest group of people in Washington right now seems to be the people who are saying on both sides on the left in on the right ... up there with all this looks just over the class of us prefer pointless not compromise ... let those big ... tax increases and spending cuts that kick in at the end of the year knowing the place ... that will let the dust settle will argue that this all again next year that's up a growing argument in Washington is it one of things negotiators have to do is race ... I've that argument to try to get to finish one before a favorite frozen snow ...